Computer Upgrade Went Haywire Here; Sorry for This Delay! -- Editor June 25 and 26, 2002 - 11,391 subscribers Today's sponsor: BenefitsLink Yellow Pages (Click on company name or banner to learn more.) Outsource benefits tasks by selecting a vendor from our online directory Your employee benefits service or product can be advertised in an online directory sponsored by the nation's leading employee benefits web site-- BenefitsLink. Your listing can take readers directly to your web site, or to a full-page advertisement we'll create. Just $200 per year (or $400 per year for a premium listing)! IRS Rules Restorative Payments to Pension Trusts Are Non-Deductible But Don't Count Towards Sec. 415 Revenue Ruling 2002-45. Excerpt: "A payment made to a qualified defined contribution plan is not treated as a contribution to the plan ... if the payment is made to restore losses to the plan resulting from actions by a fiduciary for which there is a reasonable risk of liability for breach of a fiduciary duty under Title I of [ERISA] and plan participants who are similarly situated are treated similarly with respect to the payment." (Internal Revenue Service) Cash Balance Plan Being Offered To United Technology Employees Excerpt: "About half of the 28,800 people UTC employs in Connecticut will have the choice of converting their traditional pension plan into a cash-balance plan.... The announcement of the pension plan alternative for existing employees comes as UTC prepares to make cash-balance plans the only pension program available to new hires at the company. That will happen on July 1 ..." (New Haven Register) Illinois Governor Approves Early Retirement Plan To Cut Costs Excerpt: "Gov. George Ryan today signed a law making it easier for state employees to retire early -- a move that could save the state $64.5 million. Officials estimate that 7,365 employees-- about one-third of those eligible-- will take the early retirement incentive." (Chicago Tribune) Lower-Wage Workers Lack Adequate 401(k) Investor Aggressiveness Excerpt: "When it comes to their investing in 401(k) plans, many workers are letting their fear of losing a little get in the way of earning a lot -- a decision that could cost them dearly in retirement." (San Francisco Chronicle) PBGC Issues New Edition of Data Book Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) today issued a new edition of its annual statistical reference book, which provides detailed statistics for PBGC's two separate insurance programs covering single-employer and multiemployer plans." (Pension Benefit Guaranty Corporation) Federal Pensions: Judicial Survivors' Annuities System Costs 18 pages. Excerpt: "[T]he Judicial Survivors' Annuities System (JSAS) ... is one of several survivor benefit plans applicable to particular groups of federal employees. JSAS provides annuities to surviving spouses and dependent children of deceased Supreme Court Justices, judges of the United States, and other judicial officials who participate in JSAS. The 1992 act ... requires us to review JSAS costs every 3 years ..." (U.S. General Accounting Office) Links to Items on Executive Comp, Benefits in General (These items appear in both editions of the BenefitsLink Newsletter) IRS Delays Payroll Tax Rules on ESPPs, ISOs; House Votes to Make DC Limits Permanent In a major development in the stock plan field, the IRS has indefinitely delayed implementation of its highly controversial proposal to impose payroll taxes on incentive stock options and Section 423 employee stock purchase plans. In other news, the House of Representatives voted to make permanent the higher limits on defined contribution plans (such as ESOPs and 401(k) plans) enacted in the 2001 tax bill. (National Center for Employee Ownership) IRS Puts Stock Option Employment Taxes on Hold Excerpt: "The Internal Revenue Service, bowing to pressure from Congress and corporations, [on Tuesday June 25] indefinitely postponed new rules to impose Social Security and other payroll taxes on the stock options that are often given to executives." (Washington Post) Newly Posted or Renewed Job Openings -
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